Around 9:00 p.m. the euro lost 0.39% against the greenback at 1.1294 dollars after climbing earlier today to 1.1385 dollars, a level seen more since mid-March.
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The euro retreated against the dollar on Friday as employment data in the United States turned out better than expected.
Around 7:00 p.m. GMT (9:00 p.m. in Paris), the euro lost 0.39% against the greenback, at 1.1294 dollars, after having risen earlier today to 1.1385 dollars, a level seen more since the half-March.
Dollar rebounded sharply after monthly employment report showing US economy created 2.5 million jobs in May despite pandemic and unemployment rate dropped to 13.3% .
These data surprised market players, who on average expected more than 7 million jobs to be destroyed and the unemployment rate to approach 20%.
The dollar went up.
The employment figures “reinforce the idea that the resumption of activity is underway and suggest that the support programs put in place by the government have helped stabilize the economy,” notes Kathy Lien of BK Asset Management .
The good news pushed the dollar up against the safe haven yen and the euro after eight straight sessions of the single currency up against the greenback. On the other hand, it made it retreat against other currencies considered risky like the pound sterling or the Australian dollar, adds the expert.
The good job performance “should encourage the Federal Reserve to adopt a more optimistic outlook” than in previous weeks at the meeting of its monetary policy committee on Tuesday and Wednesday, underlines Ms. Lien.
The central bank should therefore “leave its monetary policy unchanged” and reject the idea of negative interest rates a little more, she added. This prospect is rather favorable to the American currency.
The solidity of the dollar in any case ballasted the euro Friday, which was displayed up at the start of the session the day after the announcement by the European Central Bank: in addition to the 750 billion buyouts of public and private bonds announced mid -March, the institution has inflated its program by 600 billion euros.
This “will give politicians a better chance of agreeing on the European Commission’s budget proposal,” said Neil Wilson, analyst for Markets.com.
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